Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

CPI inflation ends 10 month slide with sharp uptick to 1.8%

CPI inflation ends 10 month slide with sharp uptick to 1.8%

UK consumer price inflation (CPI) ended its ten month slide with a jump from 1.6% in March to 1.8% in April, but with producer price inflation still negligible the uptick is unlikely to be sustained.

In a month strongly affected by the relatively late date of Easter this year, transport costs such as airfares and fuels were the biggest gainer, rising 1.6% over the period.

‘This meant that prices for many goods (such as airfares) in April 2014 which were boosted by the Easter holidays were compared to a normal level of prices in April 2013,’ noted Samuel Tombs of Capital Economics.

‘Clearly, this boost to the annual inflation rate will unwind next month.’

Sterling nonetheless jumped to near a week-high of $1.685 versus the dollar, before rapidly falling back to $1.682. Gains versus the euro were more durable, holding at a year-to-date high of €1.228.   

Core factory gate prices continued to slow however, up just 1% over the year to April versus 1.1% in the year to March, suggesting that underlying pricing pressure continues to be marginal.

‘Price pressures in the inflation pipeline are still very weak,’ added Tombs.

‘Accordingly, we continue to think that CPI inflation should ease to as low as 1% by the end of this year and remain comfortably below the 2% target in 2015.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: The adviser that tempted Robin Minter-Kemp on board

Profile: The adviser that tempted Robin Minter-Kemp on board

It is rare to meet an impassioned individual who is willing to bang the drum for investment advisory right now

Wealth Manager on Twitter